Indian benchmark indices tumbled sharply today, with the Sensex plunging over 650 points and the Nifty slipping below 25,600, erasing nearly ₹4 lakh crore in investor wealth. The BSE market cap dropped to around ₹469 lakh crore amid broad-based selling in banking, metal, auto, and FMCG sectors.
Five Major Triggers
- US Fed Uncertainty: Minutes from the January Fed meeting revealed splits on rate cuts, with some officials warning of hikes if inflation persists, prompting FPI outflows from emerging markets like India.
- Rising Oil Prices: Brent crude climbed 0.3% to $70.59/barrel amid US-Iran tensions and supply disruption fears, inflating import costs and stoking inflation worries.
- Geopolitical Tensions: Lingering US-Iran conflict risks and Ukraine updates added to global risk aversion, weighing on equities.
- Profit Booking: After three straight gains near highs, investors locked in profits at elevated levels.
- Sectoral Weakness: Heavy selling in key indices dragged benchmarks lower, snapping the recent rally.
Outlook and Impact
Analysts eye support at Sensex 82,824 and Nifty 25,559, with caution ahead until Fed clarity emerges. This session’s volatility underscores sensitivity to global cues, advising focus on resilient sectors amid uncertainty.
